Basis And Procedures For Collection Of Fund

The basis for collection of assessments into the Tuition Guaranty Fund shall be as follows: (1) All postsecondary educational institutions which provide instruction in Tennessee which are nonexempt under Tenn. Code Ann. § 49-7-2001 et seq. and its rules or are exempt from related annual reporting requirements on the basis of accreditation as a degree-granting institution shall pay each assessment year into the Tuition Guaranty Fund as required in Tenn. Code. Ann. § 49-7-2018. (2) The payments will be placed in the Tuition Guaranty Fund which shall be established in the treasury as a separate, revolving, non-reverting agency account for the purpose of receiving fees and paying claims authorized by this Act. Administration of this fund is the sole responsibility of the Board of Directors of the Tuition Guaranty Fund, which is authorized to establish rules and by-laws. (3) For purposes of the administration of the Tuition Guaranty Fund the following terms have the meanings indicated: (a) “Act” means the Tennessee Postsecondary Education Authorization Act as amended. (b) “Assessment year” means the institution’s Previous fiscal year and is the term to which gross tuition collected is applicable. The institution’s fiscal year shall be the same as used for the basis of collecting licensure fees as prescribed in rule 1540-1-2-.18(3) (c) “Fund” means Tuition Guaranty Fund. (d) “Gross tuition collected” means the total dollars received during the assessment year from or on behalf of students as payment for instruction programs and courses, except for non-refundable registration and application fees and charges for materials, supplies, and books which have been purchased by and are the property of the enrollees. (e) “Board” means the Board of Directors of the Tuition Guaranty Fund as described in the Act. (f) “Postsecondary educational” institution means an entity which maintains a place of business within Tennessee or solicits business in Tennessee and which offers or maintains a course or courses of instruction or study, or at which place of business such a course or courses of instruction are available through classroom instruction or by correspondence or both, to a ADMINISTRATION OF THE TUITION GUARANTY FUND CHAPTER 1710-1-2 person or persons for the primary purpose of training and preparing for a field of endeavor in a business, trade, technical, service or industrial occupation. (g) “Authorization year” is the twelve month period beginning each July 1, unless otherwise defined in rule 1540-1-2. (4) (a) Payment of fees into the Fund by all institutions organized to provide instruction in Tennessee as nonexempt postsecondary educational institutions in accordance with the schedule set forth below shall be made on or before each May 15, except payment of the assessment for the 1989 calendar year will be due within 60 days of the effective date of these rules. (b) Payment to Fund by Institutions: Gross Tuition Collected During Assessment Year Payment into Fund $ 1 - $ 25,000 25,001 - 50,000 50,001 - 100,000 100,001 - 200,000 200,001 - 300,000 300,001 - 400,000 400,001 - 500,000 500,001 - 750,000 750,001 - 1,000,000 1,000,001 - 1,500,000 1,500,001 - 2,000,000 over 2,000,000 2,000 plus 1/10th of 1% of all gross tuition over 2,000,000 (c) The staff of the Tennessee Higher Education Commission will mail notices to each nonexempt postsecondary educational institution providing instruction in Tennessee between February 1 and February 15 each year. Notices for the 1989 calendar year will be mailed immediately after the effective date of these rules. (d) The payment into the Fund shall be made payable to the Treasurer, State of Tennessee and forwarded to the licensure staff of Tennessee Higher Education Commission. The school director must sign and date the assessment form and verify by his signature that the school will maintain an auditable set of records which documents the reported gross tuition collected during the subject assessment year. (e) At such time as the Board, in its discretion, determines that the fund is adequately funded to insure against institutional closure, it may suspend collection of the fee, but may institute it at such time as the fund balance drops below a predetermined minimum balance. For a new nonexempt postsecondary educational institution which begins operation in Tennessee after July 1, 2006, the institution must meet bonding requirements as specified in Tenn. Code Ann. § 49-7-2013, and pay guaranty fund assessments as specified in Tenn. Code Ann. § 49-7-2018(d) for at least six (6) years.